Private Treaty Sales Explained
Selling niche or high-value items can be difficult. Auctions may result in the items selling for less than the desired price, or sometimes not at all. Private Treaty Sales are the solution.
When it comes to disposing of assets, the most popular method is undeniably through auction. This tried and tested method involves a seller finding an auctioneer and arranging for the item to be sold.
Interested parties then bid against each other on the item, with the auction closing when only one bidder remains. At this point the winning bidder pays for the item, the relevant fees are processed and the seller receives their money.
There are cases when items may fail to sell at auction. This could be for several reasons such as a reserve being placed on the item which has not been met or no one bidding on the item at all. Auctions are often intense and many items are shown in a short period of time - whether an item sells auction is dependant on the ideal buyer being present at the auction on the day.
In situations such as those where markets and buyers are limited, sale by Private Treaty is a more sensible and viable option.
A simple and flexible method of selling assets, sale by Private Treaty is a long-term sales process for assets that are not suited or would otherwise be difficult to sell at auction.
Private Treaty is the sale of an asset between a buyer and seller via a negotiation or the submission of an offer. Unlike auctions, Private Treaty sales don’t have an ‘end-date’ and the price is fixed, ideally at a point to attract potential buyers.
Because of the longer selling process, buyers are not pressured into immediately making a purchase. This allows the time for discussions regarding payment terms and gives potential buyers the chance to thoroughly inspect the assets for sale. Conversely, this process enables the seller to make informed decisions on who to sell the asset to.
Whether it’s a single item or complete facilities, Private Treaty is the recommended option for selling high-value and specialised assets.
If you would like to know more about our Private Treaty Sales service, contact NCM Auctions today.